IREN reported that its AI revenue surpassed bitcoin mining income for the first time, marking a historic milestone in its infrastructure pivot.

In the fourth quarter of its 2026 fiscal year, ending June 30, IREN reported that revenue from cloud AI services surpassed bitcoin mining income for the first time. Cloud AI revenue reached $70.5 million, compared to $66.7 million from bitcoin mining, according to the company’s announcement.

Amid this strategic transition, IREN recorded a net loss of $684 million. The result was heavily influenced by a non-cash asset impairment of $450.4 million, primarily tied to the decommissioning of mining equipment as facilities were converted for AI cloud use. Total quarterly revenue amounted to $137.2 million, roughly 5% lower than the previous period. Cloud AI revenue doubled from $33.6 million, while bitcoin mining income decreased by approximately 40% from $111.2 million. Adjusted EBITDA fell 68%, declining from $59.5 million to $19.2 million. IREN attributed the contraction to increased personnel expenses and upfront investments in platform development ahead of anticipated AI cloud scaling. Following the earnings release, the company’s shares fell in pre-market trading.

Peer TeraWulf also highlighted its pivot toward high-performance computing (HPC) during the second quarter. The company reported $44.8 million in total revenue, with $31.9 million—approximately 71%—derived from HPC capacity leasing. Digital assets contributed $12.8 million, down from $47.6 million in mining revenue a year earlier. By the end of June, the Lake Mariner campus operated 81 MW of revenue-generating critical IT capacity. This footprint expanded to 102 MW following the addition of a new building on July 6. Despite HPC becoming its primary revenue driver, TeraWulf remains unprofitable. Adjusted EBITDA posted a negative $18.3 million, compared to $14.5 million a year prior. The company’s net loss reached $939.9 million, largely driven by a non-cash change in the fair value of warrants totaling $755.7 million, alongside $56.4 million in interest expenses.

Cipher Digital’s newly constructed infrastructure did not contribute to revenue in the second quarter. The company reported $24.8 million in total revenue, entirely sourced from bitcoin mining. Adjusted EBITDA stood at a negative $30 million, while the net loss totaled $267.5 million. The loss was significantly affected by a $150.5 million revaluation of warrant liabilities and $66.7 million in interest expenses. First data center capacities at the Black Pearl facility were handed over to customers only in August, marking the start of rental payments. Meanwhile, Riot Platforms has begun recognizing data center revenue, though it continues to trail mining income. For the second quarter, total revenue reached $174.2 million. The data center segment accounted for roughly 13% of the total, comprising $4.9 million in rental payments and $18.3 million from infrastructure preparation services for tenants.

Throughout June, public bitcoin miners accelerated their shift toward AI infrastructure. This industry-wide reallocation has grown increasingly pronounced, fueled by surging capital expenditures in the AI sector and heightened demand for facilities offering reliable power access.